The spread of central bank digital currencies (CBDC) will not affect the stablecoin market. Paolo Ardoino, CTO of Tether behind USDT, said this.
— CBDCs will use private blockchain as modern and cost-controlled tech infrastructure
— CBDCs won’t be issued on your favorite chain, private stablecoins will continue to serve that use case
Point being: tech evolves but nothing actually changes.
Only #bitcoin is our edge.
— Paolo Ardoino (@paoloardoino) March 10, 2022
“CBDCs will use private blockchain as a modern and cost-controlled technology infrastructure. CBDC will not be issued on your favorite networks, private stablecoins will continue to serve for these purposes,” he wrote.
Already, fiat money is “mostly digital,” according to Ardoino. However, traditional institutions use an outdated technological infrastructure that costs a lot to maintain. Beyond that, such a system “is not standardized at the capillary level,” he added.
Ardoino noted that CBDCs are based on an idea Tether had eight years ago. In his opinion, the instruments of central banks will be able to displace SWIFT and archaic services, but will not replace bitcoin and other crypto assets.
In July 2021, the head of the Federal Reserve System (Fed), Jerome Powell, expressed the opposite opinion. He questioned the need for stablecoins and cryptocurrencies after the appearance of a digital version of the dollar.
Recall that in January 2022, the Fed presented a report on the results of the study of CBDC. The regulator noted that the emergence of a special digital form will allow the US dollar to maintain the status of the world’s reserve currency.
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